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Energy Expert Clears Tariff Charge Misconceptions, Says DisCos Can’t Act Alone

8 months ago
1 min read

Expert at Energy Markets Rates and Consultants Limited (EMRC), Ikhide Asuelimen, has debunked misconceptions held by a section of customers that electricity distribution companies (DisCos)  manipulate tariffs in prepaid meters.

Addressing the belief that meters run fast due to manipulation by DisCos, Asuelimen asserted that DisCos do not directly influence electricity tariffs.

He said: “Entertaining the notion that DisCos manipulate consumption rates is incorrect. When customers see a reduction in their unit count, it’s typically due to an increase in the tariff rate.”

Importantly, he clarified that DisCos lack the authority to unilaterally raise tariffs, as all adjustments adhere to regulatory body regulations and approvals.

Regarding the misconception of transitioning from three-phase to single-phase meters to reduce energy consumption, Asuelimen explained that, “The rate of consumption registered by the meter is linked to the magnitude of the electricity load, not the type of meter.”

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He explained that the customer’s load determines energy consumption, whether using a single-phase or three-phase meter.

Asuelimen provided insights into the difference between single-phase and three-phase meters, pointing out that both serve the same purpose in measuring energy consumption.

“A single-phase meter is suitable for customers drawing power from only one phase, while a three-phase meter is necessary for those using all three phases. The key factor in choosing between them is the customer’s load profile, as a single-phase meter may burn out under heavy loads.

During the podcast, Asuelimen clarified the primary function of electricity meters, which gauge power consumption based on voltage and current parameters. Voltage is determined by the grid’s state, while customers control current by regulating their electrical load.

In prepaid meters, preloaded energy units are gradually consumed as appliances are connected, and when depleted, the meter automatically disconnects until replenished via a vending process.

In a landscape often clouded by misconceptions, Ikhide Asuelimen’s expert insights in the EMRC podcast provide clarity on electricity tariff rates and meter types, ensuring consumers make informed decisions about their energy consumption.


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